CHS Prepares $4.6B for HMA Merger

Franklin, Tenn.-based Community Health Systems has announced its offering of senior notes to fund its acquisition Naples, Fla.-based Health Management Associates.

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The offering includes $1.7 billion of senior secured notes, due in 2021, and $2.9 billion of senior notes, due in 2022.

The funds will be used to cover the purchase price and transaction costs of the merger. CHS agreed to acquire Health Management for $3.9 billion in cash (and assume $3.7 billion of debt).

Earlier this week, Health Management shareholders overwhelmingly approved the merger with CHS. The deal is now expected to close before the end of the month.

More Articles on Hospital Financing:
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